Washington State has a retail sales tax, not an income tax

Washington State charges a retail sales tax on most goods you buy in stores, online, and at restaurants. The state tax rate is 6.5 percent. However, the total tax you pay at checkout is usually higher because counties and cities add their own local taxes on top of the state rate. Your final tax rate depends on where you live or shop — it can range from 6.5 percent to over 10 percent depending on the county and city combination.

Washington does not have a state income tax on wages or salaries. Instead, the state relies on sales tax, business taxes, and other sources to fund government services. This means you pay tax when you spend money, not when you earn it.

Key Takeaways

  • Washington State's base retail sales tax is 6.5 percent, but your actual tax rate includes local additions that vary by county and city.
  • Sales tax applies to most physical goods, prepared food, and certain services, but not to groceries, prescription drugs, or most medical equipment.
  • Online purchases are taxed the same way as in-store purchases if the seller has a physical presence or meets Washington's economic nexus threshold.
  • You can find your exact local tax rate by entering your address into the Washington Department of Revenue's tax rate lookup tool.

How the state and local tax rates stack together

The 6.5 percent state rate is the floor. On top of that, each county adds a county sales tax, and each city within that county may add a city sales tax. Some special districts (like public transportation or stadium districts) add their own tax as well. A purchase in Seattle, for example, is taxed at 10.25 percent: 6.5 percent state, 0.5 percent King County, 1.75 percent Seattle city, and 1.5 percent for the Regional Transit Authority.

The same item bought in a different city or county will have a different total tax. A purchase in Spokane is taxed at 8.9 percent. A purchase in a small town outside a city may be taxed at only 7.5 percent. The variation exists because each local government sets its own rate within state limits.

You can find your exact tax rate by visiting the Washington Department of Revenue website and using their sales tax rate lookup tool. Enter your street address, and the tool will show you the combined state, county, and city rate for that location.

What items are taxed and what are not

Sales tax applies to most things you buy: clothing, electronics, furniture, books, toys, and most other goods. It also applies to prepared food — restaurant meals, deli items, and food from a hot bar are all taxed. Alcohol and cigarettes are taxed at the regular sales tax rate, plus they have additional state excise taxes on top.

Several categories are exempt from sales tax. Groceries — unprepared food you cook at home — are not taxed. Prescription drugs are not taxed. Most medical equipment and supplies, including hearing aids and diabetic supplies, are not taxed. Certain services are also exempt, such as haircuts and veterinary services, though this varies slightly by how the service is classified.

The line between taxed and untaxed can be unclear. For example, a bakery item sold at a grocery store is usually not taxed (it is considered a grocery), but the same item sold at a bakery or restaurant may be taxed (it is considered prepared food). If you are unsure whether something is taxed, the cashier or the store's website can tell you, or you can contact the Washington Department of Revenue.

How sales tax works for online purchases

Online retailers must collect and send Washington sales tax if they have a physical presence in the state (like a warehouse or office) or if they meet Washington's economic nexus threshold. The threshold is $1,000 in sales to Washington customers in the current or prior calendar year. Once a seller crosses that threshold, they must collect tax on all future Washington sales.

When you buy online, the tax rate applied is based on the delivery address you provide, not where the seller is located. If you order something to be delivered to your home in Seattle, you pay Seattle's 10.25 percent tax rate. If you order the same item to be delivered to a friend in Spokane, you pay Spokane's 8.9 percent rate.

Some online sellers do not yet collect Washington tax, even though they are required to. In those cases, Washington residents may owe use tax on the purchase — a tax on items bought outside the state or online and brought into Washington. Most people do not pay use tax voluntarily, but it is technically owed. The Department of Revenue does not actively pursue individual consumers for use tax; the focus is on large sellers who fail to collect.

Who collects the tax and where it goes

Retailers collect sales tax at the point of sale and send it to the Washington Department of Revenue. The state then distributes the revenue: the state keeps its 6.5 percent portion, and the county and city portions go to those local governments. Each government uses its share to fund schools, roads, public safety, and other services.

The Department of Revenue publishes annual reports showing how much sales tax was collected statewide and by county. These reports are public information, but they do not break down individual transactions or show where specific tax dollars go.

Sales tax on specific situations

If you buy something in one state and bring it to Washington, you owe Washington sales tax on it (use tax) unless it was already taxed in the other state at a rate equal to or higher than Washington's. Most people do not track this, and enforcement is minimal for individual consumers.

If you are a business owner, you may be able to buy items for resale without paying sales tax by providing a resale certificate to the seller. You then collect sales tax from your customers when you sell those items. Resale certificates are issued by the Washington Department of Revenue and are specific to your business.

If you are a nonprofit organization, you may be exempt from sales tax on certain purchases. Nonprofits must register with the Department of Revenue and provide an exemption certificate to retailers. The exemption applies only to purchases directly related to the nonprofit's charitable mission.

How to find your local tax rate and understand your receipt

Your receipt shows the subtotal, the sales tax amount, and the total. The sales tax line should show the combined rate for your location. If you want to verify the rate is correct, use the Washington Department of Revenue's tax rate lookup tool on their website. Enter your full street address, and the tool will display your exact rate and break it down by state, county, and city portions.

If you believe you were charged the wrong tax rate, keep your receipt and contact the retailer first. If the retailer cannot resolve it, you can file a complaint with the Washington Department of Revenue. Provide your receipt, the date and location of the purchase, and an explanation of the issue.

Frequently Asked Questions

Does Washington have sales tax on groceries?

No. Unprepared food you buy at a grocery store — produce, meat, dairy, bread, cereal, and canned goods — is not taxed. However, prepared food like deli items, hot food from a bar, and restaurant meals are taxed at the full sales tax rate.

What is the difference between sales tax and use tax?

Sales tax is collected by the retailer when you buy something. Use tax is a tax you owe on items you buy outside Washington (or online from sellers not collecting tax) and bring into the state. It is the same rate as sales tax for your location, but most consumers do not pay it voluntarily.

Do I pay sales tax on services like haircuts or car repairs?

Most personal services like haircuts, veterinary care, and legal information are not taxed. However, some services are taxed — for example, installation services, repair services on certain items, and landscaping. The rule depends on how the service is classified under Washington law. Ask the business before you pay if you are unsure.

Can I get a refund of sales tax I already paid?

Generally, no. Sales tax is a final tax on the purchase. If you return an item and get a refund, the sales tax is refunded as part of that refund. If you paid tax on something you later learned was exempt, contact the retailer — they may be able to process a refund if you have your receipt and can document the exemption.

Why does my tax rate change depending on where I shop?

Your tax rate depends on the location where the purchase happens (for in-store) or where the item is delivered (for online). Different cities and counties have different local tax rates added on top of the state 6.5 percent. Shopping in different areas means different total rates.